Schlumberger announced on 22 June that it has joined the decarbonization effort that is sweeping the upstream oil and gas industry with its plans to achieve net-zero greenhouse gas (GHG) emissions by 2050.
The world’s largest oilfield service company by market capitalization spent the last 18 months analyzing the path forward, which it said accounts for the full the value chain of its business (i.e., Scope 1, 2, and 3 emissions).
“There is a new industry imperative to address climate change while meeting the demand for energy both today and in the long term, sustainably. We have a 2050 net-zero carbon emissions ambition which I believe is unique in our industry due to our capabilities as a technology company and our culture grounded in science. This reinforces our commitment to unlocking access to energy, for the benefit of all,” Olivier Le Peuch, Schlumberger's chief executive officer, said in the announcement.
“Our net-zero target is inclusive of total Scope 3 emissions; this is a first in the energy services industry,” he added. According to its website, Schlumberger employs around 82,000 people in more than 120 countries. Its chief competitor, Halliburton, announced in November that it is planning to establish its emissions reduction targets sometime this year.
Using 2019 figures as a baseline, the major milestones on Schlumberger’s roadmap are
- 2025—30% reduction in Scopes 1 and 2
- 2030—50% reduction in Scopes 1 and 2; 30% reduction in Scope 3
- 2050—Net-zero emissions with minimal reliance on offsets
Schlumberger also announced the launching of a new business that so far has identified more than 100 technologies that may help the wider industry reduce its carbon footprint. Each technology’s effect is being measured by these specific aspects: emissions reduction, energy consumption reduction, electrification, surveillance and assessment, hazmat reduction, water stewardship, waste reduction, and size reduction.
Among the innovations already in this portfolio is Ora, which Schlumberger describes as an “intelligent wireline formation testing platform” that is a lower-carbon alternative to traditional drillstem testing. Others include a multilateral well system that reduces the need to drill new wells and a nonflaring well test system for production facilities.
“Our decarbonization plans are based upon climate science and focused on three key areas: operational emissions, customer emissions, and carbon-negative actions,” Katharina Beumelburg, chief strategy and sustainability office for Schlumberger, said in a statement.
She added, “75% of Schlumberger’s baseline GHG footprint comes from the technologies our customers use. To address this, Schlumberger has introduced our Transition Technologies portfolio, which is designed to help customers reduce their Scope 1 and 2 emissions while simultaneously enabling us to meet our Scope 3 emissions target.”
The service company said it will adhere to transparent disclosures and accounting frameworks to validate its progress. That includes working with the Science-Based Target initiative on verifying that the 2030 target will be met. Schlumberger said that it is on track to meet its first reduction target in 2025.
